Venezuela slashed its gold holdings by 25 percent in the first half of 2016. The reduction in the socialist country’s gold reserves comes as the economy is collapsing and its foreign currency crisis worsens.
According to the Venezuelan central bank, its holdings dipped from $10 billion at the end of 2015 to $7.5 billion in June of this year. This is worse then what the International Monetary Fund (IMF)’s projection of 16 percent.
Its gold reserves now total just 6.5 million troy ounces.
Reportedly, the socialist government has foreign currency reserves totaling $11.99 billion as of August 16, down from $17 billion earlier this year.
The Venezuelan government has been selling off everything in order to fund its near $1 billion bond payment later this year. Moreover, Petroleos de Venezuela SA, the government-owned oil firm faces $4.2 billion in debt and interest payments that are all coming due very soon.
Whether or not Venezuela will have the money to cover its debts remains to be seen, but President Nicolas Maduro has assured its creditors that it will be able to honor its debts.
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